Ferrous scrap offers
to Turkish mills declined from Black Sea suppliers largely by Russia by $5-10/MT
this week. Offers for HMS 1&2 (80:20)
reach at US$ 440-450/MT CFR.
According to a market
source, “Russian Black Sea sourced A3 provides the same yield when melted as
the North American scrap grade.”
“There's no difference,
so far as the quality is concerned, between these two (US & Russia). Russian suppliers have fewer options to
export: there's an oversupply around Rostov and other Black Sea Russia ports which
leads to the discount,” he added
Apart from the oversupply,
lack of competition also helping prices to soften, he said further.
“The US has a
strong local market and a global reach for its scrap. Russian Black Sea
suppliers have nowhere to go but Turkey to export, as the vessels are only
2,000-4,000 MT typically and this means freight is too expensive for the
material to leave the nearby area,” he said.
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